New Jersey to End Teleworking Tax Exemption

Important Information Regarding TB-79(R) – Issued August 13, 2015 Tax: Corporation Business Tax
New Jersey will be ending the temporary suspension of tax reporting for an out of state business with an employee in New Jersey. The waiver of being required to fille a business tax return in NJ will end on September 30, 2021. On October 1st and beyond, an employee working in NJ for an out of state company will require a NJ tax filing.
The New Jersey Corporation Business Tax Act requires every domestic or nonresident corporation to pay an annual franchise tax for the following privileges:

  1. Having or exercising its corporate franchise in this State;
  2. Deriving receipts from sources within this State;
  3. Engaging in contacts within this State;
  4. Doing business, having employees, owning capital or property, or maintaining an office in this State

In-State activities by a corporation that create nexus for Corporation Business Tax purposes and
which are outside the protection of Public Law 86-272 include, but are not limited to:

  1. Repairs, maintenance, and installations;
  2. Collection or repossession activities;
  3. Credit investigations;
  4. Conducting training courses, seminars, or lectures for personnel (other than for personnel
    involved only in solicitation);
  5. Providing technical assistance;
  6. Resolving customer complaints for a purpose other than to ingratiate sales personnel with the
    customer;
  7. Approving or accepting orders or securing deposits on sales;
  8. Acquiring personnel for purposes other than solicitation activities;
  9. Maintaining a display at a single location within New Jersey in excess of two weeks during the
    tax year;
  10. Carrying samples for sale, exchange, or distribution in any manner for consideration or other
    value;
  11. Picking up or replacing damaged or returned property;
  12. Owning, leasing, or maintaining in-State facilities such as a warehouse or telephone
    answering service;
  13. Consigning tangible personal property

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